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    Chi-Square test

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    One study looked at of 234 magazines. Two pieces of information were collected on each -- its cover price and whether it continued to be published. The table below summarizes the data in a 4X2 contingency table. Notice that the last two rows suggest that the higher priced publications are more likely to survive. Can the apparent disparity be written off to chance, or can we reject the independence of price and longevity? Find the p-value and make the decision at the level alpha = 0.05

    Still Being Has Ceased
    Published Publication Total

    <$1.99 70 65 135
    Cover $2.00 - $2.49 39 28 67
    Price $2.50 - $2.99 14 3 17
    $3.00+ 13 2 15

    Total 136 98 234.

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    https://brainmass.com/statistics/chi-squared-test/magazines-reject-independence-price-longevity-317189

    Solution Preview

    Please see the answers.

    One study looked at of 234 magazines. Two pieces of information were collected on each -- its cover price and whether it continued to be published. The table below summarizes the data in a 4X2 contingency table. Notice that the last two rows suggest that the higher priced publications are more likely to survive. Can the apparent disparity be written off to chance, or can we reject the independence of price and longevity? Find the p-value and make the decision at the level alpha = 0.05
    Still Being Has Ceased
    ...

    Solution Summary

    Step by step method for computing test statistic for chi-square test is given in the answer.

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